McKinsey: Three surprising resource implications from the rise of electric vehicles

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GRA

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https://www.mckinsey.com/industries...34&hdpid=f2a6149f-215e-4349-aa02-8a8703c83632

. . .Land: An unexpected squeeze?

There are currently more than 400,000 public charging points that support the more than three million EVs now in use globally. This number will have to rise significantly to meet the global EV-adoption increases forecast by 2030 (Exhibit 1). Simply replacing gas stations with charging points or adding more charging points that are the size of gas stations won’t be sufficient to service the expected number of EVs. It will take multiple rapid 120-kilowatt charging stations with eight outlets to dispense a similar amount of range per hour as the standard-size gas station of today.

The possibility of a land squeeze will be much greater in Europe and China than in the United States. Only 40 percent of European and 30 percent of Chinese EV owners have access to private parking and wall charging, versus 75 percent of US EV owners. Nor is the challenge merely a question of where to plug in or power up; generation and distribution are also factors. Today’s power facilities can accommodate tomorrow’s significant rise in the number of EVs, as long as the vehicles are charged off peak. Faster charging during peak demand, however, will indeed have an impact. In fact, peak demand from a single EV using a top-of-the-range fast charger is 80 times higher than the expected peak demand of a single typical household.

These potential constraints will likely have to be addressed through a variety of approaches, from innovation to top-down mandates. China has set a target of 4.8 million charging stations by 2020; McKinsey expects that the country’s governmental record of centralized policies and compulsory implementation will ensure the country meets its mark. Funding outside of China, however, will be more challenging. California utilities, for example, look to increase publicly funded investments, with regulated returns. Private funding, on the other hand, could come from companies such as retailers. Several retail leaders are already beginning to consider how to turn the charging experience to their advantage by giving customers the opportunity to purchase while powering up. Just as shopping malls have long conjured images of leading retailers anchoring the buying experience, large retail-driven charging stations may come to mark the commercial landscape. . . .
 
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